Stack the risk terms

Exercise and reference answers

Questions

1. Answer

   Systematic

   Question

   Risk of holding the market portfolio.

   Choices

   1. Systematic
   2. Unsystematic

2. Answer

   Unsystematic

   Question

   Removed by diversification.

   Choices

   1. Unsystematic
   2. Systematic

3. Answer

   Std deviation

   Question

   The usual measure of volatility.

   Choices

   1. Std deviation
   2. Simple average

4. Answer

   Return

   Question

   The profit an investor expects.

   Choices

   1. Return
   2. Risk

5. Answer

   CAPM

   Question

   The model linking risk to reward.

   Choices

   1. CAPM
   2. CAGR

6. Answer

   Systematic

   Question

   The risk that actually matters.

   Choices

   1. Systematic
   2. Unsystematic

7. Answer

   Unsystematic

   Question

   A single firm's lawsuit.

   Choices

   1. Unsystematic
   2. Systematic

Instructions

Tap the right answer to add a block. Too many mistakes and the tower falls.

Explanation